Reverse Mortgage

Reverse Mortgage

What exactly is a reverse mortgage? Is a reverse mortgage the right option for you? A reverse mortgage may not be for everyone, but here's what you need to know.

A reverse mortgage is a loan available to homeowners, 62 years or older, that allows them to convert part of the equity in their homes into cash. The loan is called a reverse mortgage because instead of making monthly payments to a lender, as with a traditional mortgage, the lender makes payments to the borrower.

According to HECM, borrower requirements for purchase to get a reverse mortgage are:

The borrower must have no delinquent federal debt

The borrower must be able to pay the home's property taxes, insurance premiums, homeowners association dues and any other ongoing property costs

The home must be the borrower's primary residence

Borrowers must own the property outright or have a considerable amount of equity in it

The minimum age is 62 years old

Join Our Monthly Newsletter

Sign up with your email address to receive news and updates about current mortgage industry trends

First Name

Last Name

Email Address

We respect your privacy. We will NEVER share or sell your information.